![]() ![]() off the gold standard in the early 1970s, he severed any connection between the number of dollars and any single resource. If I try creating my own 20s on a printer, I’m counterfeiting the Constitution gives the federal government the exclusive right to create currency.Īs a currency producer, the federal government cannot “run out of money” any more than a scorekeeper at a basketball game can run out of points to award. The federal government (in the U.S.) is a currency producer it has a monopoly on dollar production. Currency users include ordinary people and every level of government below the federal one. ![]() Currency users are bound by the normal household ways of budgeting: expenses can’t get too far ahead of income for too long, or bad things happen. ![]() At its core, it distinguishes between currency producers and currency users. Kelton draws on Modern Monetary Theory, which is an outgrowth of Keynesianism. And if it’s broadly correct, which I think it is, then we have a much larger world of political possibility than we realize. ![]() It’s one of those books that seems counterintuitive until it suddenly clicks, after which it seems obvious. I really can’t recommend it (or time with the kids, for that matter) highly enough. This weekend involved options two and four, with a pen-in-hand reread of Stephanie Kelton’s The Deficit Myth. My go-tos usually involve silly comedies, time with the kids, an idiosyncratic palette of music or dense political/economic theory. ![]()
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